KUALA LUMPUR (Jan 5): CIMB Research has raised its target price for JCY International Bhd to RM1.54 and has a trading buy on the hard disk drive maker.
It said on Thursday that JCY issued a positive profit guidance for the December quarter that was even better than its already-above-consensus estimate.
“We believe that the positive earnings momentum will continue for at least the next two to three quarters and should catalyse a rerating of the stock.
“The favourable impact of a higher ASP, better product mix and stronger US$ prompts us to revise our above-industry forecasts again for FY12-14. This raises our target price to RM1.54, still based on 6.0 times CY13 P/E. Maintain Trading Buy,” it said.
It said on Thursday that JCY issued a positive profit guidance for the December quarter that was even better than its already-above-consensus estimate.
“We believe that the positive earnings momentum will continue for at least the next two to three quarters and should catalyse a rerating of the stock.
“The favourable impact of a higher ASP, better product mix and stronger US$ prompts us to revise our above-industry forecasts again for FY12-14. This raises our target price to RM1.54, still based on 6.0 times CY13 P/E. Maintain Trading Buy,” it said.
